Our jobs would be so much easier if the data we put into the system were always good, all of the time. Unfortunately, we do occasionally get bad census data from our clients. An issue occurs when the bad data is a termination date that occurred in a year prior to the first plan year on the system. In other words, if the "bad" termination date is later than the "good" termination date and both dates are before the first plan year on the system, the system holds onto the later termination date as the "last employment status date".
The solution is to use the Service History Upload tool found under Tools/Settings > History Uploads for the impacted participant(s). You will find detailed instructions on how to use this tool in our DC Compliance User Guide - 9.6. History Uploads.